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Make the Right Choice: Xero or MYOB?

Australia’s SME industry has successfully made the collective move from manual accounting to online accounting software dependency. The emergence of the cloud has got the small business industry debating over which software is best for their specific requirements.

There are various software programs available in the market, but two have been at the top for quite some time. Xero and MYOB are considered the most influential and powerful online accounting programs in Australia today. Out of all small businesses using cloud accounting systems 98% of them use xero or MYOB as their official cloud accounting software.

Both Xero and MYOB present real time data and allow accountants and bookkeepers to access the system remotely to help keep an eye on your financials and provide help and assistance in real time without the need to send or transfer data.

Both Xero and MYOB cloud accounting share some similarities – but in order to decide which will best fit your business requirements we have compared their differences for you.

Choosing between Xero and MYOB involves thinking about what your business truly requires from accounting software. It doesn’t just depend on the program’s features – it also hinges on how you want your business operations to run.

FEATURE

XERO

MYOB

ACCESSIBILITY

Browser-based approach that allows users to access the software and all its functions using any device, as long as there’s internet connection.

The level of accessibility makes Xero a convenient tool for both the business owner and his or her team.

You won’t have to worry about upgrading and purchasing a series of versions because all upgrades are automatic, with no extra charge.

Requires its users to install the application to access the accounts’ files.

Because it’s been around longer than Xero, most Australians are already familiar with its interface. Therefore, the learning curve is not so steep.

Updates require both the client and his or her chosen users to use the same version to be able to collaborate seamlessly.

Requires its users to install the application to access the accounts’ files.

Because it’s been around longer than Xero, most Australians are already familiar with its interface. Therefore, the learning curve is not so steep.

Updates require both the client and his or her chosen users to use the same version to be able to collaborate seamlessly.

DATA BACKUP

The backup feature is only available as long as you don’t cancel your subscription.

Xero only retains your data for seven years after your subscription is cancelled.

You can easily download and backup all your data on your computer.

Both the business owner and its chosen users can have multiple “snapshots” of their account.

You can easily download and backup all your data on your computer.

Both the business owner and its chosen users can have multiple “snapshots” of their account.

SPEED

Allows users to do various tasks all at once through multiple tabs.

Loading delays are not a problem.

Reporting can take around 45 seconds longer than in Xero.

Only one thing can be done at a time.

Programs “freeze” while a transaction is being processed.

Reporting can take around 45 seconds longer than in Xero.

Only one thing can be done at a time.

Programs “freeze” while a transaction is being processed.

PAYROLL

Subscription levels are based on the current number of staff for a specified month.

Follows a payroll “calendar” philosophy.

Allows the client to run an “unscheduled” pay run outside of the normal pay run calendar.

Taxes employees accordingly—during scheduled and “unscheduled” pays.

Lodges the TFN declaration to the ATO from within the program.

Staff can access their own private employee portal.

Separates payroll register and the general ledger.

Provides timesheets that lead to time-billing on invoices.

Saves double entry of payroll timesheets.

Invoicing can be done separately.

Allows users to run a payroll for any team member during any frequency at any time.

Posts journals automatically and seamlessly after each payroll.

Provides timesheets that lead to time-billing on invoices.

Saves double entry of payroll timesheets.

Invoicing can be done separately.

Allows users to run a payroll for any team member during any frequency at any time.

Posts journals automatically and seamlessly after each payroll.

BANK RECONCILIATION AND FEEDS

The first to offer automatic and integrated bank feeds.

Provides a daily bank reconciliation feature.

Follows appropriate bank rules and cash coding.

Acquired Banklink, which provides bank reconciliation.

Features are limited and not as streamlined as Xero.

Acquired Banklink, which provides bank reconciliation.

Features are limited and not as streamlined as Xero.

If you need help in figuring out which cloud accounting software best fits your business, talk to our friendly team, we can catch up for a coffee and discuss your individual needs and help identify which system would best suit your needs. So call us today for a free no obligation catch up on 9380-3555.

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We are modern, forward thinking Business Accountants Perth, providing practical, proactive, real world advice and support that goes beyond the basic preparation and lodgement of tax returns, to identify opportunities for improvement in your business.